MOSCOW (Sputnik) — Russian oil pipeline operator Transneft proposed to set a new benchmark crude for sulfur-rich oil, Urals Heavy, to avoid large price discounts, local media reported on Thursday.
There are several oil benchmarks in Russia already: Urals which is sold at a discount to Brent, Siberian Light, ESPO, Vityaz and ARCO. Urals Heavy is expected to be cheaper than Urals due to its higher sulfur content, 2.3–3.5 percent instead 1.3–1.7 percent respectively, the Russian news outlet RBC reported.
According to Transneft data, up to 84 million metric tons of sulfur-rich oil are produced in Russia annually, of which 60 million metric tons are exported. Transneft claims that the introduction of a new benchmark will help oil companies to avoid price discounts as the exported volume of sulfur-rich oil is said to grow by 2.5 metric tons every year.
